mb 0043 smu assignment

Human Resource Management

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ASSIGNMENT


REG NO : 581116826

NAME : NIDA

COURSE : MBA

SEMESTER : FIRST SEMISTER

SUBJECT CODE : MB 0043

SUBJECT NAME : HUMAN RESOURCE MANAGEMENT

SET NO : 1


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Q1) Write down the differences between personal management and human

resource management?

The history of human resource management traces its roots to the erstwhile

personal management that was prevalent in the companies of a few decades ago.

Though the two terms personal management and human resource management are

interchangeably used by most of the authors, they are the key differentiators that make

personal management (pm) different from human resource management (HRM) is

clearly based on the foundation of behavioral science knowledge relating to the

handling of employees to motivate the organization goals . The focus is more proactive

approach and pay attention to employee satisfaction and delight. Business goals and

objective and the strategies that will enable this to happen are the foundation for HRM.

The basic philosophy is driven by the theory y approach where the belief is that people

like to work and do not prefer to be supervised and made to perform .the employee

becomes a champion for the organization and its product and services.

PM is that management style that deals with the control and reactive problem

solving approach to resolve employee’s issues in a organizations. The philosophy for

the PM approach relied on the theory x approach that believed that people do not

naturally like to work and need to be coerced to work and often need to be driven to

work . is more stick approach rather than carrot approach. Rigid rules of do’s and don’t

exist and these provide the framework for employee’s behavior at the workplace.

Employees welfare and format grievance system play a significant role here and there

by managing industrial relations with high amount of trade union activity are highlighted.

Very few organization today practice this style to people management, as the benefits

and long term gains from a HRM approach , impact business results far more. HRM

emphasizes on training as an important area of people management, which covers the

following


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a) INCREASING PRODUCTIVITY

b) IMPROVING QUALITY

c) IMPROVING ORGANISATIONAL CLIMATE

d) ENSURING PERSONAL GROWTH.


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Q2) Write note on the scope of HR in India?

Contrary to these forces, in INDIA the owner manager/ government/public sector

manager was an industry icon and a national hero of sorts. The personnel management

practices were dominant of the brick- and- motor’ industry. Though the approach it was

largely welfare oriented and reactive in nature it served effectively for the large PSU

organizations that built the country’s foundation. A large part of the workforce was

migrant from the rural parts of the country and armed with educational qualifications that

served as their passport to a secure future. Many left the country to study and pursue

career overseas . This phenomenon was called ‘brain drain’ and happened during

1990through 2005. The best of the Indian talent left the country. Per present statistics

there are close to 1.7 million people of Indian origin in AMERICA according to the US

census bureau. The INDIAN AMERICAN median family is $60,093 as against the

national median family income of $38,885 left the country, the estimated buying power

of the INDIAN AMERICANS in the United States is around US $20 billion, the high

income clearly reflects the advanced educational levels achieved by Indian abroad.

Its only in the past 10-12 years with the immense growth on account of the IT

industry that winds of change began to blow. It was largely the advent of the information

technology era in INDIA that brought with it the western management practices. MNC’S

started up their operations in INDIA the FDI (FOREIGN DIRECT INVESTMENT) went

up steeply as the world saw the potential in the country human resources. In INDIA

became a preferred location for MNC’s primarily from the USA followed by others

developed countries. It was natural for the MNC’s setting up operations in INDIA to

establish their existing and proven management practices that were successfully

working in the organization back home. It also helped them manage their business

similarly. This gave birth to a new generation of management as well as HRM

practices. New hiring methods new ways of paying salaries, new employment terms and

most importantly increased focus on individual performance and outcome. There was


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emphasis on deliverables and linking individual and team performance to business

results and success. Given the highly educated workforce there was a de-emphasis in

the role of the trade unions, the era of the trade unions dominance give way to the new

order of individual negotiated salaries and terms and clearly performance linked

assessment system. Another transformation that the Indian workplace witnessed was

focused on the ethics and ethical practices in doing business it was only fair to except

that with the weak legal system, it needed the support of the government policies and

the corporate policies to beat the corruption that existed .this has significantly

contributed to INDIA emerging as a preferred destination for doing business.

All of this yielded to give the way to the birth of the ‘professional manager’.

Professional manager today are a critical and essential part of the INDIAN corporate.

The professional manager brought about a shift in the culture from a highly authoritarian

approach of getting work done to more collaborative and participative approach. In the

traditional Indian culture where the child is brought up to dependents on parents and

superiors these shift was break through and took it time to manifest. The entrepreneurs

who earlier operated in a secure, sheltered market and hardly face challenges , were

challenged by the globalization that swept in with the liberalization policies and measure

brought in by the Indian employee and his manager evolved. Together they stopped up

to face the challenges head- on and to win not only in INDIA but also globally. The

levers of a) low cost b) highly skilled c) English as the medium of education and it being

the corporate language that enabled the flow of global business to INDIA?

Hence human relations movement in INDIA has evolved very differently as

compared to the developed economies of the USA and the UK. What is currently acting

as a limitation is the enhanced awareness on the need for research based HRM

practices. While there is a lot of work happening in education system to promote this.


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Q3) Explain the critical steps in the human resource planning system?

The steps in the HRP process is a systematic set of activities carried out in a

chronological manner. Each step needs to be evaluated and debated with all possible

information gathered from the external as well as internal environment.

We will attempt to discuss in details the critical steps that are part of the above system

1) PURPOSE OF HUMAN RESOURCE PLANNING:

Human resource planning fulfils individual as well as organizational goals. What

is essentially amounts to is ‘’striking a balance’’ between the future human

resource needs and the future enterprises needs. And this is done with the clear

objective of maximizing the future on investment in human resource. And this

objective may be laid down for a short- term.

2) ESTIMATING/FORECASTING THE FUTURE MANPOWER REQUIREMENTS:

The first step in the process is to arrive at the desired organizational structure at

a given point in time. Mapping this structure with the existing structure helps in

identifying the gap in resource requirements. The number and type of employees

needed have to be determined .in addition to the structure there are a number of

external factors that affect this determination. They include business forecasts,

competitor strategy, expansion plans, product/ skills mix changes, profit/ revenue

growth projections, in addition to management philosophy and government

policies.

Forecasting provides the basic premises on which manpower planning is done.

Forecasting is necessary for various reasons such as

a) The challenges of the general economic business cycles have an

influence on the short range and long run plans of all organizations . These

are inflation, wages, prices, costs, and raw material supplies.


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b) Changes in management philosophy and top management leadership

styles.

c) An expansion/ growth initiative might need the business to use additional

machinery and personnel, and re-allocation of facilities, all of which call for

adequate advance planning of human resource.

d) The use of new technology requiring a change in the skills of workers as

well as a change in the number of employees needed.

e) Very often, changes in the quantity or quality of products or services

require a change in the organization structure. Plans have to be made for this

purpose as well.

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3) AUDITING HUMAN RESOURCE:

Once the future human resource needs are estimated, the next step is to

determine the present supply of man power resources. This is done through what

is called ‘’skills inventory’’ a skills inventory contains data about each employee

skill, abilities, work preferences and other items of information which indicate his

worth to the company. Skills inventory are also referred to as competence

dictionaries. This information is usually retained as part of the performance

management system with the HR department. This step in the HRP system with

the HR department this step in the HRP system helps identify the existing profile

of the manpower and its efficiency. It helps highlight where the organization is vs.

where it ought to be .the step concludes with identifying clear gaps in the skills/

manpower mix required to meet the upcoming business objectives.

4) JOB ANALYSIS

After having decided how many people would be needed, it is necessary to

prepare a job analysis. The recorded of training, skills, qualifications, abilities,

experience, and responsibilities etc. as needed for a job are studied . job

analysis include the preparations of job description and job specifications.


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5) DEVELOPING A HUMAN RESOURCE PLAN:

This step refers to the development and implementation of the human resource

plan, which consists in finding out the sources of labour supply with a view to

making an effective use of these sources. Some important considerations at this

point are:

a) Specific roles/ discipline being hired for, of them which roles are pivotal for the

business.

b) Competencies and capabilities needed.

c) Manager VS employee hiring.

d) Hire internally VS. External sourcing.

e) Planning for new skills through existing staff VS hiring new teams.

f) In case of surpluses, planning for redeployment / reduction in workforce as

required.

g) Succession planning for key positions in the company.


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Q4) With reference to the compensation and salary system what are the

system that are helpful to raise the effectiveness of employee?

The term compensation management or alternative wage and salary

administration revolves around designing and managing policies and methods

of disbursing employee compensation. Traditionally it includes such areas as

job evaluation, maintenance of wage structures, wage surveys, incentive

administration, wage changes and adjustment, supplementary payouts, profit

sharing, control of compensation costs, and other related pay items.

Salaried often implies a status distinction because those who are on salary

are generally white collar, administrative, professional , and executive

employees whereas wage earners are designed as hourly ,non- supervisory,

or blue collars . wage earner in some organization do receive full wage if they

are absent for such reason as sickness, whereas salaried employees,

especially at the lower levels, often receive overtime pay when they work over

the standard work week.

Compensation/ salary system are designed to ensure that employees are

rewarded appropriately depending on what they do and the skills and

knowledge required for doing a specific job. It must therefore provide for the

following key factors in order to be effective. The following factors may be

helpful to raise the effectiveness of employees.

a) Signal to the employee the major objectives of the organizations:

Therefore it must link to the overall goals and objective of the company

.for example if doing a quality job is critical for the company its

compensation system has to ensure that this is adequately rewarded. On

the other hand if company values productivity and units produced, the

compensation system would be designed such that productivity is

rewarded.


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b) Attract and retain the talent an organization needs :

The needs to benchmark salaries o the prevalent market standard for the

job /skills so that the company is able to attract the right talent. If a

enterprise pays a salary lower that what the market does for that job

/responsibility the probability that suitable candidate would take the job

offer and join the company. Even if they do join subsequently when they

find that the market pays more for that job they would likely quickly find a

more remunerative job and leave the company.

c) Motivate employees to perform effectively :

As discussed at the outset, money is a key motivator and it often might be

the only motivator for the most employees. Therefore ensuring that

compensation is appropriately disbursed need to be taken care of while

designing the compensation system. Jobs in the brick and motor

production set ups would focus on higher incentive policies that would

motivate the employees to produce more while the base- salary would be

low.

d) Create the type of culture the company seeks to engender:

Compensation system plays a critical role as sponsors for the

organizations culture. A performance driven culture would build

compensation policies that clearly and significant reward performance, a

company that rewards employees who stay longer in the company with

significant better incentive program.

Hence we see how compensation systems are reflective of the

organization over all philosophy of what its goal and objective are and how

this can be linked to the salary payout.


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Q5) What is competency? How it can be linked to the hr system?

First popularized by BOYATIZ competency is defined as ‘’a capacity that

exists in a person that leads to a behavior that meets the job demands within

parameters of organizational and that in-turn bring about the desired results. An

underlying characteristic of a person results in effective and / or superior

performance on the job.

Competency can be thought of a as a tool that can be used to map ‘best- in- class’’

performance the best performer is always called the competent performer.

Competencies are based on KNOWLEDGE- information accumulated in a particular

area of expertise, SKILLS – the demonstration of the expertise, MOTIVE- the

recurrent thought that drives behavior , attitude-self- concept , value and self- image,

TRAITS- a general disposition to behave in a particular way.

LINKING COMPETENCY TO HR SYSTEM:

One of the key benefits of the competency based management approach is its

usage to build all of the others HR system such as recruitment, performance

management, training and development, career development, compensation

management and succession planning. Let study them one by one.

1) Recruitment and selection :

The competency profile for a job serves as the reference for the candidate hunt

for the position. It is used at multiple stages in the recruitment and selection

process.

a) Job description and competency profile shared with the recruitment

consultant as well as hosted on the company internet site for prospective

applications to view.

b) Use the competencies to design the appropriate selection tests and other

methods.


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c) Assessment forms for interviewers to contain the competency list and specify

the desired proficiency levels.

2) Performance management :

Increasingly the focus in most organization using competency frameworks is to

build competency frameworks is to build competency based performance

assessment processes . the employees performance is assessed on the core

tasks and results as well as on the competencies required for the job he/ she

doing . if there are gaps between the desired proficiency and the current

proficiency of the employee the employee is reviewed for development initiatives

to improve the competency.

3) Training needs:

As explained above the information on gaps in competencies are collated for

employees across the organization and suitable training interventions are

designed. The methodology used for competency improvement is usually action

learning based . focus is on internalizing the learning by ensuring workplace

application projects and activities. Manager support in making competency

training useful is important.

4) Career planning:

Competency assessments are popularly used for helping an employee discover

his strength competencies and therefore serve as effective means for the

employee to identify what roles/ jobs can be best for the competencies the

employee possesses. Most career planning assessment and activities are built

on enhancing the employee’s strength areas and identifying jobs that match the

strength.

5) Compensation philosophy:

While there is significant work done in researching competency based

compensation the practical application of competency based compensation

system is not as easy. The competency framework provides a common

benchmarking of all jobs across the organization on the competencies required

and the proficiency level for the competency. This framework is then mapped to

levels or grades that create a job to level mapping. The level has a range of


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compensation that can be paid for any job at a specific level. For example if there

are 25 job clusters in a company. Each job clusters can have anywhere between

5to 17 jobs. Each job in the job cluster is mapped to a level in the company. So if

a particular job cluster has 5 jobs each jobs has a set of competencies and

proficiency and this determine the level of the job and let us assume it maps to

level 42 in the compensation system .all levels 42 jobs are mapped to

compensate system . All levels 42 job are mapped to compensate range with a

minimum salary of Rs 45000 and a maximum salary of Rs 120000 .this range

specifies the recommended salary range for an employee in this job.

6) Succession planning:

Competency based management is most effective in succession planning

initiates. Competency assessment is a widely used to identify and nurture talent

in organizations. Most succession planning decisions use the competency

assessment data for the employee and this along with the career planning data

are used to ascertain employee readiness and inclination for new role and

responsibilities in the critical roles identified for succession planning.


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Q6) Dynamic learning is an organization that wants to receive the hr

policies. It has conducted a survey the result of the survey indicated that

there is employee unrest, trade less, asentism more grievance that all

clearly indicate low morale. Suggest the measure that can be taken to

improve employee morale?

In a dynamic organization faces a lot of the problem. So the company had

decided to create a HR policies survey to know what the main problem in the company

is. The hr policies indicated in the survey that there is employee unrest in the

organization and TRADELESS ASENTISM of the workers in the organization and there

is more grievances in the company we can be solve these problems in the organization

by taking the improving employee effectiveness morale.

Improving Morale

There are a number of measures which can be used to control the warning signals

of the low morale. The following are the positive measure to be taken to bring job

satisfaction to the employees and reconcile individual interests with the interests of the

organization

1) Creation of whole jobs:

Under this method, complete job are assigned to employees. The complexity

of a job should be increased so that it may appeal to their higher needs.

2) Job enrichment:

It tries to deal with dissatisfaction by increasing job depth. Under this,

individual employees may be given responsibility for setting their own work place

for concerning their own errors, and/ or for deciding on the best way to perform a

particular task.


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3) Building responsibility in to a job :

Employee should encourage participating and if possible be held

responsible for taking decisions some delegations of responsibility from the

managers to the employee could be useful in improving employee ownership.

4) Managerial effectiveness:

This can be achieved by:

a) Developing work groups

b) Improving the social contacts of the employee _ time way from work in team

building and fun activities.

c) Managerial coaching discussed above.

d) Employee stress management activities.

5) Flexing working hours :

Flex time/ work from home provisions allow employee to arrange their

work hours to suit their personal needs and life- styles. This is particularly suited

to situations with fluctuating workloads. Flextime employees are responsible for

co-ordination their function with their employees and there by have more

responsibility and autonomy.

6) Rotation of the jobs:

This reduces employee boredom which arises out of the monotonous

nature of his work.

7) Incentive and profit sharing plans :

Morale can be improved by effective incentive and profit sharing

schemes. Incentive schemes are effective in improving workplace morale they

need to carefully design well communicated and implemented to be effective. In

addition to its economic aspects, profit sharing has also psychological aspects

relating to friendly move by the management in providing the employees an

opportunity to participate in the profits.

mb 0043 smu assignment

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